I booked a residential apartment two years ago and it is yet to be delivered to me. Would an ongoing project fall within the scope of the new Real Estate Act and, if yes, what are the rights and remedies available to a buyer under the Act?

All new residential and commercial projects with land measuring over 500 sq m (or 5,400 sq ft) with a proposal to construct more than eight apartments would have to be registered under the Real Estate (Regulation and Development) Act, 2016 (‘Act’). Moreover, developers of projects beyond the planning area would also have to register under the Act if specifically ordered by the ‘Regulator’.

State Governments are required to establish the regulator and formulate the rules within their respective territories. Once the regulator and rules are in place, all new residential, plotted and commercial projects would have to be registered, and information regarding the developer, project to be constructed, its approvals, amounts received from allottees, utilisation of project funds, and timelines and stages for construction, among other key information, would have to be disclosed to the public.

One of the main objectives of the Act is to standardise the practices followed in the real estate sector, while balancing the interests of consumers and developers.

As on date, the Act, in its entirety, has not become fully operative. While States such as Gujarat, Madhya Pradesh, Uttar Pradesh and certain Union Territories, have notified the rules under the Act, most States are yet to fulfill the requirements of the Act. States such as Maharashtra, Karnataka and Tamil Nadu have prepared the draft rules with some modifications and circulated them for public discussion.

Developers of ongoing projects for which completion certificates are not issued are required to register such projects within three months from the date of commencement of the Act. For the uninitiated, a completion certificate is issued by the competent planning authority to certify that the building is completed in accordance with the sanctioned plans.

However, certain States like Uttar Pradesh have, in its rules, clarified that projects will not be considered as ongoing if the common areas and facilities or services have been handed over to the residential welfare association or local authorities for maintenance. Second, if all development work is completed and sale or lease of 60 per cent of the apartments is executed. And lastly, if the developer has applied for a completion certificate after completion of all development works.

In response to your query, if the residential project constructed by your developer satisfies the criteria for minimum land area or apartments to be constructed, and is further considered an ongoing project in accordance with the Act and applicable state rules, such a residential project would fall within the purview of the Act. In this case, your developer would have to register the project and you would be able to approach the regulator for speedy redressal of your grievances, including seeking compensation for any delay in construction or handing over of the apartment.

There are key rights and remedies available to a consumer under the Act. For starters, to be provided with information and copies of sanctioned plans for the project. Two, to be updated on the stage-wise time schedule for the completion of the project. Three, to provide consent (along with two-third of the owners) for any altercations to sanctioned plans and specifications of the building and common areas within the project. Last but not the least, to have the developer rectify structural defects that are brought to the notice of the developer within five years from the date of handing over of the apartment.

Disclaimer: The information above should not be construed as legal advice and law could vary across state and local jurisdiction.

The writer is a partner with Shardul Amarchand Mangaldas, Advocates & Solicitors, Chennai. The views are personal.